n Business Tax and Company Law Quarterly - Tax Consequences in respect of the Reduction of Debt

Volume 6, Issue 3
  • ISSN : 2219-1585


Complex tax rules regulate the situation where a debt is not repaid in full. These debt reduction provisions are contained in section 19 of the Income Tax Act 58 of 1962, and paragraph 12A of the Eighth Schedule to the Act. This article summarises the impact of these provisions on both the borrower and the lender. It also describes the concept of limited recourse loans and discusses how these tax provisions may apply to such arrangements.

Loading full text...

Full text loading...


Article metrics loading...


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error